Correlation Between Money Market and Ubs Money
Can any of the company-specific risk be diversified away by investing in both Money Market and Ubs Money at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Money Market and Ubs Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Money Market Obligations and Ubs Money Series, you can compare the effects of market volatilities on Money Market and Ubs Money and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Money Market with a short position of Ubs Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Money Market and Ubs Money.
Diversification Opportunities for Money Market and Ubs Money
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Money and Ubs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Money Market Obligations and Ubs Money Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Money Series and Money Market is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Money Market Obligations are associated (or correlated) with Ubs Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Money Series has no effect on the direction of Money Market i.e., Money Market and Ubs Money go up and down completely randomly.
Pair Corralation between Money Market and Ubs Money
Assuming the 90 days horizon Money Market Obligations is expected to generate 21.21 times more return on investment than Ubs Money. However, Money Market is 21.21 times more volatile than Ubs Money Series. It trades about 0.05 of its potential returns per unit of risk. Ubs Money Series is currently generating about 0.02 per unit of risk. If you would invest 91.00 in Money Market Obligations on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Money Market Obligations or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Money Market Obligations vs. Ubs Money Series
Performance |
| Timeline |
| Money Market Obligations |
| Ubs Money Series |
Money Market and Ubs Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Money Market and Ubs Money
The main advantage of trading using opposite Money Market and Ubs Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Money Market position performs unexpectedly, Ubs Money can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ubs Money will offset losses from the drop in Ubs Money's long position.| Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard 500 Index | Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard Total Stock |
| Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard 500 Index | Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard Total Stock |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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